Answered step by step
Verified Expert Solution
Link Copied!

Question

1 Approved Answer

Zira Company reports the following production budget for the next four months. Each finished unit requires four pounds of direct materials, and the company wants

Zira Company reports the following production budget for the next four months. Each finished unit requires four pounds of direct materials, and the company wants to end each month with direct materials inventory equal to 20% of next month's production needs. Beginning direct materials inventory for April was 445 pounds. Direct materials cost $5 per pound. Prepare a direct materials budget for April, May, and June. (Round your answers to the nearest whole number.) Units to produce April May June 556 610 588 July 568 ZIRA COMPANY ences Units to produce Materials required per unit Materials needed for production (pounds) Add: Desired ending materials inventory (pounds) Total materials required (pounds) Less: Beginning materials inventory (pounds) Materials to purchase (pounds) Materials cost per pound Cost of direct materials purchases Direct Materials Budget April May June 556 610 588 units 41 4 4 pounds 2,224 2,440 2,352 pounds 488 470 454 pounds 2,712 2.910 445 2,806 pounds pounds pounds $ 5 $ 5$ 5 per pound $ 9,760 $ 05 O

Step by Step Solution

There are 3 Steps involved in it

Step: 1

blur-text-image

Get Instant Access to Expert-Tailored Solutions

See step-by-step solutions with expert insights and AI powered tools for academic success

Step: 2

blur-text-image

Step: 3

blur-text-image

Ace Your Homework with AI

Get the answers you need in no time with our AI-driven, step-by-step assistance

Get Started

Recommended Textbook for

Financial Managerial Accounting

Authors: Belverd E. Needles

7th Edition

0618867465, 978-0618867462

More Books

Students also viewed these Accounting questions